ADVFN UK Market News

Author: Fiona Craig

  • EasyJet profits fall as higher fuel costs and Middle East disruption weigh on third quarter

    EasyJet profits fall as higher fuel costs and Middle East disruption weigh on third quarter

    EasyJet (LSE:EZJ) reported a sharp decline in third-quarter headline profit before tax as higher fuel prices and softer demand following the conflict in the Middle East offset continued strength in leisure travel. Headline profit before tax fell to £85 million from £286 million a year earlier, while the airline carried 25.8 million passengers during the quarter with a load factor of 88.9%. Although unit revenue eased slightly and higher fuel costs reduced margins, non-fuel unit costs remained broadly in line with management guidance.

    Holidays business and operational improvements support strategy

    The airline said operational performance continued to improve, with higher on-time performance and stronger customer satisfaction scores helping reinforce its brand ahead of the peak summer season.

    EasyJet holidays remained a key contributor to earnings, delivering £84 million of profit before tax while continuing to grow its customer base. The group also announced new commercial partnerships with Expedia, expanded its retail distribution network in Germany and continued implementing management changes alongside digital initiatives and aircraft upgauging to improve efficiency, generate additional revenue and support its medium-term profitability targets.

    Capacity growth planned despite cost headwinds

    Looking ahead, EasyJet plans to increase seat capacity by around 3% during FY26 and expects low double-digit growth in EasyJet holidays customers as it continues to gain market share across the European travel market.

    Management acknowledged that profitability remains sensitive to fuel price movements and late booking patterns. However, the company said early indicators for first-quarter 2027 yields are encouraging, while ongoing cost-saving measures, including the introduction of larger aircraft and increased automation, are expected to support stronger earnings as market conditions stabilise.

    Outlook balanced by strong momentum and external risks

    EasyJet’s outlook is supported by improving underlying profitability, a stable balance sheet and positive management commentary highlighting strong liquidity and continued efficiency initiatives. However, weaker free cash flow trends, elevated fuel costs and softer forward demand remain important risks.

    Technical indicators remain supportive, with the shares trading above key moving averages and maintaining positive momentum, although an elevated RSI suggests the stock may be approaching overbought territory. Valuation remains broadly reasonable, with the shares trading on a price-to-earnings ratio of around 12 and offering a dividend yield of approximately 2%.

    About EasyJet

    EasyJet is a low-cost airline group operating short-haul routes across Europe and the Mediterranean. Alongside its point-to-point airline, the company has developed an integrated holidays business offering package holidays through a capital-light model supported by a growing network of hotel and travel partners. EasyJet focuses on serving both leisure and business travellers while expanding ancillary revenue and improving operational efficiency.

  • SRT Marine Systems delivers strong FY26 growth as maritime security demand expands

    SRT Marine Systems delivers strong FY26 growth as maritime security demand expands

    SRT Marine Systems (LSE:SRT) reported strong growth for the year ended 30 June 2026, driven by continued execution of major contracts and increasing demand for maritime surveillance and navigation technologies. The company, which supplies intelligent maritime monitoring systems to government and commercial customers, continued to benefit from growing investment in maritime security and digital navigation infrastructure.

    Revenue and profits surge as order pipeline strengthens

    For FY26, SRT generated estimated unaudited revenue of £116 million, representing a 49% increase year-on-year. Profit before tax and exceptional items more than doubled to approximately £10 million, while gross cash rose sharply to £57 million as contract delivery accelerated and the group’s revenue mix broadened.

    Management noted that margins were affected by higher costs on one major project, reflecting supply chain disruption linked to tensions in the Middle East and a strategic decision to expand the project’s scope. However, the company described the additional investment as an opportunity to secure larger future contracts and reiterated confidence in meeting current market expectations. SRT also highlighted a £1.8 billion sales pipeline, providing significant long-term growth opportunities as governments continue to prioritise maritime security.

    Long-term opportunity balanced by valuation concerns

    SRT’s outlook remains supported by strong revenue growth, improving operational performance and an expanding pipeline of international opportunities. Nevertheless, weaker cash flow generation continues to present a challenge despite improving profitability.

    Technical indicators also remain relatively weak, with negative momentum suggesting the shares may continue to face near-term pressure, although oversold conditions could provide support. Valuation remains demanding, with a high price-to-earnings ratio and no dividend currently available to underpin investor returns.

    About SRT Marine Systems

    SRT Marine Systems is a global developer of maritime intelligence, surveillance and navigation safety solutions for both government and commercial customers. Its technology is used by coast guards, fisheries authorities, port operators and vessel owners to improve maritime domain awareness, enhance security and support safer, more efficient navigation through integrated software, hardware and data services.

  • hVIVO orderbook more than doubles as second-half recovery remains on track

    hVIVO orderbook more than doubles as second-half recovery remains on track

    hVIVO (LSE:HVO) reported first-half revenue of £16.3 million for 2026, compared with £24.2 million in the same period last year, while reaffirming expectations that both revenue and profitability will be weighted towards the second half of the year. The company said adjusted EBITDA is expected to recover from a negative mid-single-digit margin in the first half to a positive outcome in the second half, supported by stronger project delivery. hVIVO also ended June with £13 million in cash and maintained guidance for high single-digit revenue growth for the full year, attributing the weaker first-half performance to project timing delays rather than contract cancellations.

    Growing orderbook strengthens long-term visibility

    Despite lower first-half revenue, the company’s orderbook has expanded significantly, more than doubling since the beginning of 2026 to £65 million. Management said proposal volumes have increased by around 45%, reflecting strong demand across infectious disease, respiratory and cardiometabolic research programmes.

    The business also highlighted the benefits of operating under a single hVIVO brand, bringing together its consulting, clinical trials, human challenge trials and laboratory services. Management believes the integrated structure is improving cross-selling opportunities, attracting new clients and strengthening the company’s long-term growth prospects.

    Demand momentum offsets weaker recent financial performance

    hVIVO’s outlook continues to reflect a mixed financial picture. Recent results have been affected by lower revenue, operating losses, negative gross profit and weaker cash flow, creating near-term challenges for investors.

    However, these concerns are partly balanced by improving technical momentum in the shares and management’s positive commentary regarding the strength of the sales pipeline and future demand. The expanding orderbook provides greater visibility over future revenue, although liquidity and the timing of contract bookings remain important factors to monitor over the coming quarters.

    About hVIVO

    hVIVO plc is a UK-based clinical development specialist and the global leader in human challenge trials. The company provides integrated services spanning consulting, clinical trials, human challenge studies and laboratory testing, supporting pharmaceutical and biotechnology companies from preclinical development through to Phase II clinical trials. hVIVO works with seven of the world’s ten largest biopharmaceutical companies and operates specialist research facilities in the UK and Germany.

  • BT Group maintains guidance as fibre and 5G expansion drive early-year performance

    BT Group maintains guidance as fibre and 5G expansion drive early-year performance

    BT Group (LSE:BT.A) delivered a solid start to its financial year, with continued growth in full-fibre broadband and 5G services helping offset ongoing declines in legacy voice revenues. The company reported record demand for its full-fibre products, while its 5G+ network now covers 77% of the UK population. Fibre connections across the Openreach and Consumer divisions generated more than half of broadband revenue for the first time, and EE maintained its position as the UK’s leading mobile network. Customer churn also remained low across both broadband and postpaid mobile despite a competitive market environment.

    Fibre rollout and Verizon venture support long-term strategy

    BT remains on course to expand its fibre-to-the-premises (FTTP) network to 25 million premises by December 2026, reinforcing its long-term investment in the UK’s digital infrastructure.

    The company also announced a joint venture with Verizon to establish a larger global connectivity business, enabling BT to sharpen its strategic focus on its core UK operations. First-quarter revenue and adjusted EBITDA were broadly unchanged from the previous year, as growth in fibre and business connectivity services was offset by continuing declines in traditional voice services. However, ongoing cost-saving initiatives, lower energy consumption and reduced labour costs helped protect margins.

    Management reaffirmed its financial guidance, including expectations for normalised free cash flow of approximately £2.0 billion this financial year and around £3.0 billion by the end of the decade.

    Transformation strategy underpins outlook

    BT’s outlook continues to be supported by resilient operating cash flow, stable EBITDA and continued progress on its transformation programme. While revenue growth remains modest and leverage continues to be monitored, management’s confidence in delivering its long-term financial targets provides a positive backdrop.

    Valuation remains relatively demanding, with a higher price-to-earnings multiple limiting some upside potential, while technical indicators currently point to a broadly neutral-to-slightly negative trend in the shares.

    About BT Group

    BT Group plc is one of the UK’s largest telecommunications providers, operating through its Consumer, Business and Openreach divisions. The company supplies broadband, mobile, full-fibre and enterprise connectivity services while continuing to invest heavily in fibre-to-the-premises and 5G infrastructure. BT also serves corporate and public sector customers with critical communications services and is reshaping its international operations through a planned joint venture with Verizon as it focuses on long-term growth in the UK market.

  • AJ Bell reports record inflows as customer numbers and assets continue to grow

    AJ Bell reports record inflows as customer numbers and assets continue to grow

    AJ Bell (LSE:AJB) delivered a strong third-quarter performance, with record customer inflows helping drive significant growth in both assets under administration and its client base. The investment platform added 39,000 new customers during the quarter, taking its total to 762,000, while assets under administration increased 26% year-on-year to £121.5 billion. The performance was supported by favourable market conditions and record net inflows of £3.0 billion.

    Growth was recorded across both distribution channels, with direct-to-consumer customers increasing 30% over the past year and advised customer numbers also rising. The company’s investment management business continued to expand, with assets under management climbing 41% to £11.4 billion following record net inflows, highlighting continued demand for AJ Bell’s low-cost investment platform and supporting its ambition to increase market share in the UK platform sector.

    Marketing investment and lower fees support growth strategy

    Management said continued investment in brand awareness and marketing, together with enhancements to its advised distribution strategy, are helping attract new customers and increase investment inflows across both consumer and adviser channels.

    The company also reduced charges on its core managed portfolio service, allowing clients to benefit from economies of scale while strengthening AJ Bell’s competitive position. Management believes the move will help improve customer retention and support long-term growth as increasing numbers of UK savers turn to investment platforms for pensions and wealth management.

    Strong financial position underpins outlook

    AJ Bell’s outlook remains supported by strong profitability, healthy cash generation and a low level of financial leverage. The shares also appear attractively valued, combining a relatively modest price-to-earnings ratio with a dividend yield that continues to appeal to income-focused investors.

    Technical indicators remain positive, with the stock continuing to trade in a strong upward trend. However, momentum measures, including an RSI of around 80, suggest the shares may be approaching overbought territory, potentially limiting near-term upside.

    About AJ Bell

    AJ Bell PLC is one of the UK’s largest investment platforms, providing investment and pension services to both retail investors and financial advisers. The company offers low-cost access to pensions, ISAs and general investment accounts, alongside proprietary investment funds and managed portfolio services, helping customers build long-term wealth through a broad range of investment products.

  • Empire Metals strengthens leadership team to advance Pitfield Titanium Project

    Empire Metals strengthens leadership team to advance Pitfield Titanium Project

    Empire Metals (LSE:EEE) has expanded its project leadership team as it accelerates the development of its flagship Pitfield Titanium Project in Western Australia. The company is continuing to build internal technical expertise as it progresses the large-scale titanium resource through feasibility studies, resource expansion and development planning, positioning the project to meet growing global demand for critical minerals.

    Senior appointments support project delivery and approvals

    Empire Metals has appointed Chris Dodds as General Manager (Project Delivery) and Emma Neale as Senior Advisor (Approvals), bringing additional expertise in major project execution and environmental permitting.

    Management expects the appointments to strengthen project delivery, accelerate feasibility work and enhance regulatory engagement, helping streamline the development process and support Pitfield’s progression towards commercial production. The expanded in-house capability is also intended to reinforce Empire’s long-term position within the global titanium supply chain.

    Strong project momentum offsets early-stage financial profile

    Empire Metals’ investment outlook continues to reflect the characteristics of an exploration and development company. The business remains pre-revenue, with ongoing operating losses and continued cash outflows as it invests in advancing the Pitfield project. However, the company maintains a relatively low level of debt, providing financial flexibility as development activities continue.

    From a technical perspective, the shares remain supported by positive price momentum and continue to trade above key moving averages. Valuation metrics remain limited due to the absence of earnings and dividend payments, resulting in a negative price-to-earnings ratio.

    About Empire Metals

    Empire Metals is an exploration and resource development company focused on advancing the Pitfield Titanium Project in Western Australia. The project hosts a reported mineral resource of 2.2 billion tonnes grading 5.1% TiO₂, with mineralisation extending from surface and demonstrating strong grade continuity. Test work has shown conventional processing can produce a 99.25% TiO₂ product suitable for both titanium metal and titanium pigment applications, supporting the project’s potential to become a significant supplier of critical minerals.

  • Centrica announces 2.0p interim dividend with first-half 2026 results

    Centrica announces 2.0p interim dividend with first-half 2026 results

    Centrica (LSE:CNA) has released its interim results for the six months ended 30 June 2026, publishing the full report through its corporate website and the UK Financial Conduct Authority’s National Storage Mechanism. The energy group will also present its first-half performance to analysts and institutional investors via a live webcast, continuing its regular engagement with the investment community.

    Board confirms interim shareholder payout

    The board has declared an interim dividend of 2.0 pence per share, which will be paid on 22 September 2026 to shareholders on the register at the close of business on 21 August 2026. The shares will trade ex-dividend from 20 August 2026.

    Centrica also confirmed that the parent company has sufficient distributable reserves to support the payment, providing reassurance over its ability to continue returning capital to shareholders.

    Outlook supported by cash generation and dividend

    The company’s outlook reflects a balanced financial profile. Strong revenue growth and consistently positive free cash flow continue to support the investment case, although earnings remain affected by the net loss reported during 2025 and a balance sheet that remains moderately leveraged.

    Technical indicators remain broadly constructive, with the shares trading above key longer-term moving averages and momentum remaining largely neutral. Valuation also appears reasonable, supported by a moderate price-to-earnings ratio and an established dividend yield.

    About Centrica

    Centrica plc is a UK-based energy company operating across the utilities sector, supplying gas, electricity and related energy services to residential and business customers. The group has a significant presence in the UK energy market and continues to focus on delivering reliable energy supply while generating sustainable returns for shareholders.

  • Eleco delivers record recurring revenue as AI products and rebrand drive growth

    Eleco delivers record recurring revenue as AI products and rebrand drive growth

    Eleco (LSE:ELCO) reported a strong first-half performance, achieving record annualised recurring revenue as demand for its software portfolio continued to grow. Annualised recurring revenue (ARR) increased 16% to approximately £35.5 million, while organic ARR rose 23%, marking a new high for the group. Total recurring revenue climbed 14% to around £16.9 million and now accounts for 85% of overall revenue. Headline revenue also increased 8% to approximately £19.9 million, supported by solid organic growth and healthy cash generation.

    AI innovation and portfolio reshaping strengthen strategic focus

    The company ended the period debt-free with cash of £15.4 million, demonstrating strong financial discipline despite acquisition-related spending, dividend payments and other non-operational cash outflows.

    During the first half, Eleco streamlined its business by disposing of its non-core Veeuze visualisation unit, allowing management to concentrate on its core software operations. The group also expanded its artificial intelligence offering through the launch of Asta Vision Plus and Asta Estimate, while Pemac continued to grow its presence in the US medical manufacturing market. In addition, the business completed its rebranding under the Eleco name to strengthen its identity across international markets.

    Strong balance sheet supports long-term outlook

    Eleco’s outlook remains underpinned by a strong financial position, with no debt, robust free cash flow generation and continued recurring revenue growth providing a solid platform for future expansion. However, these strengths are partly offset by a significant decline in net income recorded during 2025.

    From a technical perspective, the shares continue to exhibit positive long-term momentum, although indicators suggest the stock is approaching overbought territory. Valuation appears broadly in line with the wider market, while investors also benefit from a modest dividend yield.

    About Eleco

    Eleco plc is an AIM-listed software provider focused on the built environment, offering solutions for project management, estimating, building information modelling (BIM), property management and facilities management. Through brands including Eleco, Elecosoft, BestOutcome, Pemac and Eleco Technologies, the company delivers software supporting every stage of the building lifecycle.

    Its products are used by customers across construction, engineering and asset-intensive industries from project planning and design through construction, fit-out and long-term facilities management, helping organisations improve digitalisation, efficiency and regulatory compliance.

  • Anglo American lowers copper cost guidance as portfolio transformation progresses

    Anglo American lowers copper cost guidance as portfolio transformation progresses

    Anglo American (LSE:AAL) delivered a steady operational performance during the second quarter, maintaining copper production at 173,200 tonnes while premium iron ore output declined only modestly following planned maintenance at Kumba and lower grades at Minas-Rio. The miner also reduced its 2026 unit cost guidance for its copper operations in Chile and Peru, lowering overall production costs through stronger by-product credits and continued cost discipline despite rising fuel and consumables expenses linked to geopolitical tensions in the Middle East.

    Asset reshaping continues alongside operational progress

    Production increased significantly across the manganese and rough diamond businesses, while steelmaking coal and nickel volumes were broadly flat to slightly lower. Preliminary guidance indicates that both the De Beers and steelmaking coal divisions are expected to report negative underlying EBITDA for the first half of the year.

    Anglo American also continued to execute its portfolio transformation strategy. During the quarter, the company agreed the sale of its Australian steelmaking coal business, progressed planned divestments of its De Beers and nickel operations, and continued advancing the proposed merger with Teck. The transaction is intended to strengthen Anglo American’s position as a copper-focused mining company while reducing its exposure to non-core assets.

    Mixed financial backdrop balanced by strategic momentum

    The company’s outlook continues to reflect weaker recent financial performance, with declining revenue and consecutive net losses weighing on sentiment. However, positive free cash flow generation, ongoing cost-saving initiatives and progress on debt reduction provide important support.

    Technical indicators also remain favourable, with the shares continuing to trade above key moving averages and maintaining positive momentum. Management commentary highlighted continued operational improvements and strategic progress, although valuation remains mixed due to the company’s negative price-to-earnings ratio despite an attractive dividend yield.

    About Anglo American

    Anglo American is a global diversified mining company producing copper, premium iron ore, manganese, diamonds, steelmaking coal and nickel. The group is repositioning its portfolio towards higher-margin commodities that are expected to benefit from long-term demand trends, particularly copper, while divesting businesses that are considered non-core to its future strategy.

  • Fonix grows profits and accelerates European expansion after strong FY26 performance

    Fonix grows profits and accelerates European expansion after strong FY26 performance

    Fonix plc (LSE:FNX) delivered another year of growth in FY26, reporting higher profitability, rising payment volumes and continued strong cash generation. Gross profit increased 12.9% to £21.0 million, while adjusted EBITDA rose 11.0% to £16.2 million, slightly ahead of market expectations. Total payment volume grew 8.0% to £303.3 million, enabling the company to increase its final dividend and launch a £2.0 million share buyback programme, highlighting the board’s confidence in the group’s financial position.

    International expansion gathers pace with new product launches

    During the year, Fonix strengthened partnerships with major UK media customers including Global and ITV while continuing to expand across Europe. The company launched commercial operations in Portugal, began pilot programmes in Switzerland and continued building its presence in France as well as a fifth European market.

    Product innovation also remained a key growth driver. Fonix expanded the rollout of its PayFlex platform, advanced trials of its RichMessaging solution and continued promoting its award-winning CompsPortal offering. Combined with 100% platform uptime throughout the year, these developments position the business for further growth in FY27 as it broadens its international reach and enhances its mobile engagement services.

    Strong financial position supports outlook

    Fonix enters the new financial year with solid underlying financial momentum, supported by growing profitability, healthy cash generation and an attractive valuation. Recent strategic developments, including international expansion and continued shareholder returns through dividends and share buybacks, reinforce confidence in the company’s long-term growth strategy.

    Technical indicators point to positive short-term momentum, although longer-term resistance levels could limit further gains. While management has provided limited additional commentary beyond the trading update, the company’s operational progress and expanding pipeline suggest continued opportunities for growth.

    About Fonix

    Fonix plc is a London-based provider of mobile payments and messaging technology, enabling organisations to generate revenue and increase customer engagement through mobile channels. Founded in 2006, the company serves clients across the media, charity, entertainment and enterprise sectors, including ITV, Global, Bauer Media, RTÉ, Comic Relief and BBC Children in Need. Its technology platform focuses on delivering secure, consumer-focused mobile payment and communication solutions.